President Obama on Thursday will sign into law the Improper Payment Elimination Act.

Washington (CNN) - President Obama will sign into law Thursday the Improper Payment Elimination Act - an effort designed to slim down wasteful government programs and curb fraud in federal spending.

"The fact is, Washington is a place where tax dollars are often treated like Monopoly money, bartered and traded, divvied up among lobbyists and special interests," Obama said in March when he announced the initiative. "And it has been a place where waste - even billions of dollars in waste - is accepted as the price of doing business."

The act will use something known as payments recapture audits, which will pay auditors financial incentives to find improper payments. The White House said it could save $2 billion in taxpayer money over the next three years.